Valeant Pharmaceuticals Inc. (NYSE: VRX) reported its first quarter financial results, despite reporting a quarterly loss, the company provided a stronger revenue forecast for the year and beat analysts’ estimates. Shares rose by 13.5 percent shortly after the opening bell on Tuesday.
For the quarter, Valeant reported revenue of $1.99 billion, decreasing 5.4 percent year over year. The company reported a net loss of $2.69 billion, or $7.68 per share, compared to a profit of $628 million, or $1.79 per share the same quarter a year ago.
Excluding items, Valeant reported an EPS of $0.88, beating Thomson Reuters’ estimates of $0.60 per share.
Valeant’s Bausch and Lomb International segment revenue decreased by 3 percent year over year to $1.1 billion, due to divestitures and discontinuations. Branded Rx segment drew in revenue of $593 million, decreasing 6 percent. U.S. Diversified Products reported revenue of $299 million, decreasing 14 percent.
Bausch and Lomb segment, the pharmaceutical’s optical business, draws in a significant amount of Valeant’s revenue, which has led the company to change its name to Bausch Health Companies Inc., effective in July 2018.
"Becoming Bausch Health Companies is a major step forward in our transformation," said Joseph Papa, chairman and CEO, Valeant.
"We believe Bausch Health Companies more accurately represents the full scope of the Company today – a leader in the development and manufacture of a wide range of pharmaceutical, medical device and over-the-counter products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology."
Papa became CEO last year in May in efforts to turnaround the struggling company. Since serving, he was able to complete multiple divestitures to improve operations around other profitable segments, which has reduced debt by more than 20 percent.
Valeant now raises its full year guidance, despite reporting declining revenue across all of its segments.
For 2018, Valeant now raises its revenue forecast to $8.15 to $8.35 billion from $8.1 to $8.3 billion. Full year adjusted EBITDA is projected to be in the range of $3.15 to $3.30 billion, higher from the previous forecast of $3.05 to $3.2 billion.